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	<title>Mouli Cohen&#187; Conscious Capitalism and the Value of the Customer | Mouli Cohen</title>
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		<title>Conscious Capitalism and the Value of the Customer</title>
		<link>http://www.moulicohen.com/2009/07/24/conscious-capitalism-and-the-value-of-the-customer/</link>
		<comments>http://www.moulicohen.com/2009/07/24/conscious-capitalism-and-the-value-of-the-customer/#comments</comments>
		<pubDate>Fri, 24 Jul 2009 20:00:51 +0000</pubDate>
		<dc:creator>kelseykeith</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Acquisitions]]></category>
		<category><![CDATA[Amazon]]></category>
		<category><![CDATA[brands]]></category>
		<category><![CDATA[conscious capitalism]]></category>
		<category><![CDATA[innovation]]></category>
		<category><![CDATA[innovative]]></category>
		<category><![CDATA[Mergers]]></category>
		<category><![CDATA[online]]></category>
		<category><![CDATA[retail]]></category>
		<category><![CDATA[Sequoia Capital]]></category>
		<category><![CDATA[Zappos]]></category>

		<guid isPermaLink="false">http://www.moulicohen.com/?p=585</guid>
		<description><![CDATA[Reports of Amazon&#8217;s acquisition of venture-backed online apparel and footwear retailer Zappos.com took over the business newswire this week, with speculation that invester Sequoia Capital forced Zappos to sell, that Zappos requested Amazon stock options instead of cash, and that Amazon is aiming for other buyouts including Netflix. Rumors aside, news of the merger has [...]]]></description>
			<content:encoded><![CDATA[<p>Reports of Amazon&#8217;s acquisition of venture-backed online apparel and footwear retailer Zappos.com <a href="http://blogs.wsj.com/venturecapital/2009/07/23/the-daily-start-up-sorting-through-the-zappos-chatter/" target="_blank">took over the business newswire</a> this week, with speculation that invester Sequoia Capital forced Zappos to sell, that Zappos requested Amazon stock options instead of cash, and that Amazon is aiming for other buyouts including Netflix. Rumors aside, news of the merger has produced an extended spotlight on a company many consider an archetype of &#8220;conscious capitalism&#8221;: an innovative business model, a dynamic and personable CEO, and an unmatched customer service policy.</p>
<p>According to <a href="http://adage.com/cmostrategy/article?article_id=138080" target="_blank">Advertising Age</a>, at last year&#8217;s South by Southwest festival Bezos &#8220;attentively and noticeably [took] notes near the front row while Zappos&#8217;s Tony Hsieh talked about his company&#8217;s culture, values and service. Considering that Amazon paid nearly a billion dollars to procure ownership of an online shoe company, what did Amazon CEO Jeff Bezos see in Zappos that he had to have?</p>
<p>One answer is social media expertise. This is exemplified by Zappos <a href="http://twitter.com/Zappos" target="_blank">Twitter feed</a> (which has over one million followers), a perfect example of incorporating design into social media, Hsieh channels transparent communication to his customers that is sorely lacking in most corporate transmissions. Without design in such disclosures, you&#8217;re left with little more than a system where &#8220;duct tape and bubble gum hold fragile tactics.&#8221; As Dachis Corporation founder and media designer <a href="http://blogs.harvardbusiness.org/cs/2009/07/yes_your_social_media_strategy.html" target="_blank">David Armano</a> notes,&#8221;This means moving beyond our current definition of &#8220;social media&#8221; as a PR tool and thinking of it as something that can evolve the way we work, communicate, interact and collaborate at a core business level.&#8221;</p>
<p>Zappos has leveraged these platforms to change the way they run an online business, finding value and brand loyalty in a place most would never consider as a media channel: customer service.</p>
<p>This is Zappos&#8217; deepest purpose and its most forthright. As Michael Strong explains on <a href="http://www.openforum.com/idea-hub/topics/the-world/article/are-you-a-conscious-capitalist-michael-strong" target="_blank">OpenForum</a>, moving from the &#8220;traditional model of increasing shareholder value to a broader model of increasing value for all your organization&#8217;s stakeholders (customers, employees, suppliers, investors, the community, and the environment)&#8221; is a main tenet of conscious capitalism.  Zappos has done this with its extreme commitment to customer service, no matter what the initial cost, and a team model that values individualism, empowerment, accountability, and trust.</p>
<p>It will be very interesting to see how Amazon utilizes such a strong, built-in corporate culture as it merges Zappos with its existing operations. As a forward-thinking and successful retail giant in its own right, perhaps it will serve as a truly innovative model for corporations of the future to look to for inspiration.</p>
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